Apple’s non-existent tablet is grabbing all the headlines, but Microsoft doesn’t want to be left on the sidelines. According to tipsters, a Microsoft-branded tablet is in late prototype phases and is due early 2010, shortly before or after Apple unveils own portable entertainment gizmo.

According to ZDNet’s Mary Jo Foley, Microsoft has restarted the Tablet project. The software maker is apparently on the brink of unveiling a Microsoft-branded Tablet, presumably powered by Windows 7. Tipsters say that the “Alchemy Ventures” code-named project includes Microsoft’s chief experience officer J Allard overseeing a team of engineers, including some members of the Microsoft Surface team.

The author received no information whether Microsoft will manufacture the device on its own or outsource the hardware part to one of its key partners. She did point her finger, however, at Microsoft-announced intentions to get out of the hardware business after “at least one more” Zune HD device.

“One more Zune HD device” a tablet?

Microsoft watchers decipher this to be an intention to bake the Zune software and an accompanying Zune Marketplace cloud into the Windows Mobile 7 feature set. Windows Mobile 7 will be a major overhaul of Microsoft’s mobile OS and is due late next year. Microsoft is apparently interested in collecting royalties from Windows Mobile 7 license sales, leaving its broad ecosystem of hardware vendors to build MP3 players, phones, and tablets powered by the Windows Mobile 7.

Meanwhile, a Microsoft tablet sounds like a nice idea. While Microsoft might beat Apple to the punch by rushing its tablet first, Redmond will likely withhold the launch, as the rest of the industry, until after Apple releases its device. The rumor-mill claims Jobs is holding an Apple tablet for 2010. Based on insider tips, Apple Insider claims that Apple’s chief executive greenlighted a 10-inch portable entertainment device for a Q1 2010 launch. According to a Financial Times report, entertainment industry exec who have seen the device have said it’ll be “fabulous for watching movies.”

Apple and Microsoft to rethink tablets

Members of the Surface team are also allegedly participating in a Microsoft tablet project.

Microsoft has been rumored with developing a tablet a few times in the past. Apple’s Newton started the tablet craze, but lackluster reception led to its withdrawal from the market. Microsoft’s Bill Gates would later promote Windows-powered tablet PCs, carrying one to meetings on a regular basis in order to take sketches and notes. Microsoft is now supplying tablet vendors with the OS and apps, but the product category has never took off in a big enough way. But who could blame consumers for refusing to put up with poor designs and a sub-par usability? These disadvantages are stemming from the fact that no vendor controls the whole project as hardware makers source the OS and apps from third-parties.

Conclusion: A Microsoft tablet could be cool

Since the market failed to respond to the tablet sales pitch, Microsoft is right to produce own tablet. If the company woes consumers, the tablet market could expand beyond an IDC-estimated 1.4 percent of the global portable PC market. An uptick in tablet sales yields increased OS royalties, benefiting Microsoft as a result. Of course, Microsoft also wants own tablet out of a pride.

With Apple’s device already being hailed as a game-changing gizmo that will re-invent the whole tablet category, Microsoft is interested to participate in the game rather than risk being left out. I have absolutely no doubt in my mind that there’s a Microsoft-branded tablet in Redmond’s labs. In fact, I’m pretty sure it’ll arrive shortly before or after Apple’s tablet hits the market. Judging by the Surface, Zune HD, and Windows 7 accomplishments, a Microsoft tablet could be another gizmo from the Windows maker that will be cool to play with.

What about you? Would you rather buy an Apple-branded tablet or the one from Microsoft? Which one do you think will be more user-friendly and why? Will a Microsoft-branded tablet be a smooth sail or an embarrassment? Share your thoughts in the comments below.

Reader Comments

Rob

“If the company woes consumers”? Don’t they woe consumers already?

http://www.thenetworkgarden.com Mark Sigal

While this is a really cool looking prototype, the real question is when will the actual product ship and what’s the OS and tools side of the equation, as Apple has pretty much shown this to be the bar for success.

Clearly, Apple learned this lesson from Microsoft (in PC 1.0) but MS feels long removed from those days (i.e., cultivating and growing a software centered ecosystem), especially in light of all of the legacy that they have to support.

Btw, here are some thoughts on where Apple’s Tablet and the e-Book is headed: